Dual Software License Template for the United Arab Emirates

A Dual Software License agreement allows you to offer your software under two different licensing models simultaneously - typically a commercial proprietary license and an open-source license. This hybrid approach enables you to monetize your software through commercial sales while fostering community development through open-source distribution. Under UAE law, this document must comply with Federal Law No. 7 of 2002 on Copyrights and Related Rights, which protects software as literary works and establishes the legal framework for licensing intellectual property.

When do you need this document?

You need a Dual Software License when developing software products that you want to distribute under multiple licensing models. This is particularly valuable if you're a UAE-based software company seeking to balance commercial revenue with open-source community benefits. The agreement is essential when you want to offer enterprise customers premium support and additional features under a commercial license, while providing the same core software to developers under an open-source license like GPL or MIT. Technology companies often use this approach to build market presence through open-source adoption while generating revenue from commercial users who require proprietary licensing terms.

Key legal considerations

Your agreement must clearly define the scope and limitations of each license type to avoid conflicts between commercial and open-source obligations. You need to specify which components are available under each license, as mixing proprietary and open-source code can create legal complexities. The document should address intellectual property ownership, ensuring you retain sufficient rights to license the software under both models. Consider including provisions for license conversion, allowing users to upgrade from open-source to commercial licenses. You must also define support obligations, warranty disclaimers, and liability limitations differently for each license type, as commercial customers typically expect greater legal protections than open-source users.

Legal requirements in United Arab Emirates

Under UAE Federal Law No. 7 of 2002 on Copyrights and Related Rights, you must ensure your licensing agreement properly establishes copyright ownership and grants appropriate usage rights. The agreement must comply with UAE Federal Law No. 1 of 2006 on Electronic Commerce and Transactions if executed electronically, requiring proper electronic signature procedures and contract formation protocols. If your software processes personal or health data, you must incorporate requirements from UAE Federal Law No. 2 of 2019 on the Use of ICT in Healthcare and applicable data protection regulations. The document should include UAE-specific governing law clauses and dispute resolution mechanisms, preferably specifying UAE courts or arbitration procedures. You must also ensure compliance with UAE consumer protection laws if licensing to individual users, providing fair terms and clear disclosure of rights and restrictions under each license type.